Short sales as a financial strategy not a necessity

Brian, You will be seeinmg much more of this next year as people decide it makes financial sense to unload a property that will be under water for many years. As long as they are not trying to hide assets or lie about their financial situation I take the listing and do the short sale. Let the lender decide how they want to handle it.

We get paid to sell houses not to judge folks. Go for it. Just make sure the seller understands that if they have money and income the lender may very well want some of it.

Brian - first - Love the photo! Very appropriate. I am also in the same boat with BB and I feel there will be many more around our neck of the woods too next year the will be thinking about or doing a short sale. ~Rita

Brian,

I agree with Bryant, our job is to sell homes and not judge why the person is selling it.

Brian, Getting  a dislcosure signed is a necessity. Mine is getting longer and longer.

Ok here is where I fall on this.  If you make an obligation for 30 years, does it mean you just say forget the obligation to pay?  This is tough.  I say you should stick to your obligation, however everyone is doing it.  It doesn't make it right.  The money is coming from somewhere and that somewhere last I checked is from tax payer. 

All that said, If they have to move they have to move, and we get paid to help them with that.  If the are in distress, sell, if they are selling short to give the bank the loss... I don't think that right and if borrowers do that the banks will make wholesale changes to their practices. 

I don't think there is an easy answer.

Brian, I would be surprised to see a lender accept a short sale without the requisite "hard ship" letter and the evaluation of income.  That would only leave the FC if they really want out.

Steve

I can't help thinking that most people are good, decent and honorable and WANT to live up to their obligations.  At least the vast majority that I know who are struggling right now.  I just can't see a mass exodus of people strategically throwing in the towel, it's so emotionally traumatic.  I know there is always the exception, but maybe there are more strategic defaults right now because the total number is up.  It's strange times out there, for sure.  Can I get a copy of y'alls addendum?????

I also lean towards non judgement. It is not my position to decide who "should" pay or go. I will always thoroughly explain the consequences and the possibilities, but if they need/want to sell, that is what I'm here for.

I think it's no different from the person who could pay his mortgage but simply walked away from the home and let the bank foreclose.

Last time I checked, investing is about knowing when to sell and when to hold; a person's home is often their largest investment.  Why is it so such a crime to dump that investment when it tanks?  In this case, the bank is left holding the bag - a risk they took when they lent the money.  One could reasonably argue it was the banks that caused the demise of these investments in the first place. 

And if we want to talk "morality" then we must ask ourselves to whom do we hold a higher moral obligation:  our family or the banks?  In many cases, keeping these albatrosses means financial ruin to one's family.

Go ask Trump and Buffett when was the last time they hung on to a hopeless investment.  This ain't church.  It's business.